If the price level is falling,all of the following are true except
A)Lenders are better off.
B)Businesses are reluctant to borrow money.
C)Purchasing power increases.
D)Borrowers are not affected.

Question

Quizplus · Accepted Answer

If the price level is falling, borrowers are negatively affected because the value of the money they borrowed will be worth more than before. This means they will have to pay back more in real terms than they initially borrowed.

If the Price Level Is Falling,all of the Following Are